LOS ANGELES--(BUSINESS WIRE)--Mar. 21, 2017--
Nearly all (90 percent) of executives polled in a recent survey say that
retention of new hires is an issue in their organization. In the survey,
conducted by the Futurestep division of Korn
Ferry (NYSE:KFY), the majority of executives also say that between
10 percent to 25 percent of new hires leave within the first 6 months.

Editor’s Note: Survey Results at Bottom of Release

The top reason new recruits leave, according to the survey, is their
role is different from what they expected it would be during the hiring
process.

“With low unemployment rates and increased need for specialized talent,
keeping new hires is a critical issue,” said Bill Gilbert, president,
North America, Korn Ferry Futurestep. “It’s incumbent upon recruiters
and hiring managers to paint a clear picture of what will be expected of
the candidate in his or her new role, and make sure promises of
resources, job structure and reporting relationships are fulfilled.”

Nearly one-fifth (19 percent) of respondents say new hires leave because
they don’t like the company’s culture. “Especially for Millennials,
company culture is key to job satisfaction and companies must ensure
they are correctly portraying the culture during the recruiting and
onboarding processes,” said Tim Powell, managing director, ANZ.

Nearly all the respondents (98 percent) say onboarding programs are a
key factor in retention efforts, and 69 percent say they have formal
onboarding programs for all employees. However, nearly a quarter (23
percent) say the programs last only one day, and approximately one-third
(30 percent) say they only last a week.

“Onboarding must be about more than just the basic administrative
processes such as entering time, submitting paperwork and logging onto
the intranet,” said Gilbert. “It should be an in-depth process that
introduces the new hire to company culture, vision and strategic
priorities, and should also help new hires understand available
development opportunities to help them succeed in the organization.”

Nearly half (42 percent) of respondents say they use data collected
during the recruiting process, such as candidate assessments, to help
with onboarding once the candidate is hired.

“Many of today’s assessments provide a treasure trove of information
about the candidates, such as their competencies, traits, drivers and
experiences,” said Powell. “Based on the individual’s specific
opportunities for improvement, Futurestep’s offering provides clients
with customized development and onboarding plans for new hires.”

The survey also found that less than one-third of respondents (29
percent) say their company surveys new hires about the recruiting
experience. Of those who do conduct surveys, more than half (52 percent)
say they look at results on a regular basis to formulate / adjust hiring
practices; 20 percent review results to help with retention strategies;
and 10 percent use the data to trouble shoot when issues arise. Nearly
one-fifth (18 percent) of respondents say they don’t do anything with
the data, even though they collect it.

“Candidates are the best source for insight into the recruiting
process,” said Powell. “Asking them how to make the experience better is
an easy, direct way to enhance the ways companies source and attract the
best and the brightest.”

Finally, when asked about mentorship programs for new hires, 98 percent
of respondents said such programs would help new hires acclimate to
their new environment. However, nearly half (47 percent) do not have a
formal mentor program.

“Mentor programs are not only beneficial for new hires to learn about an
organization, they also benefit existing employees by helping them
understand the viewpoints and experiences of those new to the company.
This allows them to have different insights and encourages them to
become more agile as they go about their jobs,” said Gilbert.

About the survey

Korn Ferry fielded the survey in February and March 2017 and garnered
1,817 responses.

Survey Results

To what extent would you agree that retention of new hires is
an issue?

To a great extent

54 percent

To some extent

36 percent

Not an issue

10 percent

What percentage of new hires would you estimate leave the
organization within the first 6 months?

Less than 10 percent

36 percent

Between 10 percent and 25 percent

52 percent

Between 26 and 50 percent

12 percent

More than 50 percent

1 percent

What is the main reason a new hire would leave your
organization within the first year?

Their specific role is not what they had anticipated during the
hiring process

39 percent

Working for the company is not as presented during the hiring process

12 percent

They don’t see a path for advancement

15 percent

They don’t like their boss

15 percent

They don’t like the company culture

19 percent

Do you see onboarding as a key factor for retention?

Yes it is a key factor

74 percent

Somewhat

24 percent

No

2 percent

Do you have a formal onboarding program for new employees?

Yes for all employees

69 percent

Yes, but only for entry-level employees

10 percent

Yes, but only for senior-level employees

4 percent

We do not have a formal onboarding program

17 percent

If your organization has a formal onboarding program, how long
does it last?

One day

23 percent

One week

30 percent

One month

19 percent

60-90 days

22 percent

Six months

3 percent

One year

3 percent

Does your organization use any information collected during the
recruitment process (e.g. candidate assessments) to assist with
onboarding once the candidate is hired?

Yes, we use information collected during recruiting

42 percent

We use assessments for recruiting, but we don’t use the information
during onboarding

32 percent

We do not collect any data about candidates during recruiting

26 percent

Does your organization survey new hires about their recruitment
experience?

Yes

29 percent

No

71 percent

If your company surveys new hires about their recruitment
experience what do you do with the data?

We look at it on a regular basis and trouble shoot when there are
issues

10 percent

We look at it on a regular basis to formulate / adjust hiring
practices

52 percent

We look at it on a regular basis to boost retention

20 percent

We don’t do anything with it

18 percent

Does your organization have a mentor program for new hires?

Yes for all employees

23 percent

Yes for entry-level employees

20 percent

Yes for senior employees

9 percent

We do not have a mentor program for new hires

47 percent

Would a mentor program for new hires help them acclimate?

Yes to a great extent

67 percent

Yes to some extent

31 percent

Would not help or hurt

1 percent

No to some extent

1 percent

No to a great extent

0 percent

About Korn Ferry

Korn Ferry is the preeminent global people and organizational advisory
firm. We help leaders, organizations and societies succeed by releasing
the full power and potential of people. Our nearly 7,000 colleagues
deliver services through our Executive Search, Hay Group and Futurestep
divisions. Visit kornferry.com for more information.